The most commonly used measure of the volatility of returns is the:
AStandard deduction
BStandard distribution
CStandard denomination
DStandard deviation
Answer & Solution
Correct answer: D. Standard deviation
1. It measures how far returns scatter from the average.
2. It is the standard statistic in finance.
3. That measure is the standard deviation.
_Source: OpenStax Principles of Finance, Chapter 15, Risk and Return._
Keep practising Risk and Return
Browse all Risk and Return questions for BFM (Bachelor of Financial Markets), or explore more Finance topics.